Why UniFirst Stock Tumbled by 3% Today

Workplace uniform and protective equipment specialist UniFirst's (NYSE: UNF) stock was hardly the first choice of investors on Wednesday. Following the company's publication of its latest set of quarterly results that morning, many of those folks assertively sold off their shares, resulting in a 3% decline across the trading session.

Revenue up, profit down

For its first quarter of fiscal 2026, UniFirst earned just over $621 million in revenue, which was almost 3% higher on a year-over-year basis. Net income under generally accepted accounting principles (GAAP) went in the opposite direction, falling by 20% to $34.4 million ($1.89 per share).

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While that top line beat the average analyst estimate of slightly under $620 million, the company whiffed on earnings. Collectively, pundits tracking UniFirst stock were modeling $2.10 per share.

In its earnings release, UniFirst attributed the revenue increase to new customer additions and improved retention of existing clientele. Profitability was impacted by the company's investments made during the quarter.

Full-year guidance maintained

UniFirst also reaffirmed its existing outlook for the entirety of fiscal 2026. It continues to believe that revenue will range from just under $2.48 billion to almost $2.5 billion for the period, with per-share GAAP earnings anticipated to be between $6.58 and $6.98 per share. By comparison, those figures for 2025 were $2.43 billion and $7.98 per share, respectively.

While I don't consider this quarter to be a disaster for UniFirst, it isn't exactly inspiring. That goes double for the profitability guidance, which forecasts a notable decline in the annual tally. I don't envision a sudden surge in demand for the company's offerings, so I see little reason to buy its stock.

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.